CS/CS/HB 261

1
A bill to be entitled
2An act relating to just valuation of property; amending s.
3193.011, F.S.; providing for consideration of zoning
4changes and permits in determining the highest and best
5use; revising the condition of property just valuation
6factor; including cost of removal of tangible personal
7property as a consideration in the net sale proceeds
8factor; requiring property appraisers to use only market
9rent in arriving at just value of certain income-producing
10properties; providing a definition; providing
11applicability; amending s. 193.016, F.S.; providing for
12consideration of value adjustment board decisions for all
13properties; creating s. 193.018, F.S.; authorizing owners
14of certain properties to enter into deed-restriction
15agreements with counties for certain purposes; requiring
16property appraisers to consider deed-restriction
17agreements in determining just value; providing for
18payment of back taxes plus interest if the deed-
19restriction agreement is terminated early; amending s.
20194.011, F.S.; revising provisions relating to provision
21of evidence by petitioners and property appraisers;
22amending s. 194.013, F.S.; requiring value adjustment
23boards to waive a petition filing fee for taxpayers
24eligible for certain constitutional exemptions; amending
25s. 194.015, F.S.; revising the membership of value
26adjustment boards, appointment criteria, and quorum
27requirements; amending s. 194.032, F.S.; providing for
28criteria for rescheduling certain hearings under certain
29circumstances; amending s. 194.034, F.S.; requiring value
30adjustment boards to order refund of certain filing fees
31if a determination of a property appraiser is overturned;
32amending s. 194.192, F.S.; providing for judgments against
33property appraisers under certain circumstances; providing
34for assessment and award of attorney fees to taxpayers
35under certain circumstances; amending s. 194.301, F.S.;
36requiring property appraisers to provide evidence of
37correctness of assessments in certain actions; deleting
38provisions providing a presumption of correctness of
39property appraiser's assessments and imposing requirements
40on taxpayers to prove assessments excessive; providing an
41effective date.
42
43Be It Enacted by the Legislature of the State of Florida:
44
45     Section 1.  Effective upon this act becoming a law and
46applicable to assessments beginning January 1, 2008, section
47193.011, Florida Statutes, is amended to read:
48     193.011  Factors to consider in deriving just valuation.--
49     (1)  In arriving at just valuation as required under s. 4,
50Art. VII of the State Constitution, the property appraiser shall
51take into consideration the following factors:
52     (a)(1)  The present cash value of the property, which is
53the amount a willing purchaser would pay a willing seller,
54exclusive of reasonable fees and costs of purchase, in cash or
55the immediate equivalent thereof in a transaction at arm's
56length;
57     (b)(2)  The highest and best use to which the property can
58be expected to be put in the immediate future and the present
59use of the property, taking into consideration any applicable
60judicial limitation, local or state land use regulation, or
61historic preservation ordinance, and any zoning changes and
62permits necessary to achieve the highest and best use, and
63considering any moratorium imposed by executive order, law,
64ordinance, regulation, resolution, or proclamation adopted by
65any governmental body or agency or the Governor when the
66moratorium or judicial limitation prohibits or restricts the
67development or improvement of property as otherwise authorized
68by applicable law. The applicable governmental body or agency or
69the Governor shall notify the property appraiser in writing of
70any executive order, ordinance, regulation, resolution, or
71proclamation it adopts imposing any such limitation, regulation,
72or moratorium;
73     (c)(3)  The location of said property;
74     (d)(4)  The quantity or size of said property;
75     (e)(5)  The cost of said property and the present
76replacement value of any improvements thereon;
77     (f)(6)  The condition of said property. When determining
78the condition of the property, the property appraiser shall
79consider physical deterioration, functional obsolescence, and
80external obsolescence;
81     (g)(7)  The income from said property; and
82     (h)(8)  The net proceeds of the sale of the property, as
83received by the seller, after deduction of all of the usual and
84reasonable fees and costs of the sale, including the costs and
85expenses of financing, and allowance for unconventional or
86atypical terms of financing arrangements, and including the
87costs of removal of tangible personal property. When the net
88proceeds of the sale of any property are utilized, directly or
89indirectly, in the determination of just valuation of realty of
90the sold parcel or any other parcel under the provisions of this
91section, the property appraiser, for the purposes of such
92determination, shall exclude any portion of such net proceeds
93attributable to payments for household furnishings or other
94items of personal property.
95     (2)  Notwithstanding the requirement that property
96appraisers consider all of the factors enumerated in subsection
97(1) in arriving at just valuation, property appraisers shall
98consider only the market rent from income-producing property in
99the case of all residential rental property and all commercial
100property that is leased to more than one legal entity, each of
101which conducts a separate business activity on the property. For
102purposes of this subsection, the term "market rent" means the
103most likely rent that an income-producing property would command
104if offered for lease in the open market.
105     Section 2.  Section 193.016, Florida Statutes, is amended
106to read:
107     193.016  Property appraiser's assessment; effect of
108determinations by value adjustment board.--If the property
109appraiser's assessment of the same items of tangible personal
110property in the previous year was adjusted by the value
111adjustment board and the decision of the board to reduce the
112assessment was not successfully appealed by the property
113appraiser, the property appraiser shall consider the reduced
114value values determined by the value adjustment board in
115assessing the those items of tangible personal property. If the
116property appraiser adjusts upward the reduced value values
117previously determined by the value adjustment board, the
118property appraiser shall assert additional basic and underlying
119facts not properly considered by the value adjustment board as
120the basis for the increased valuation notwithstanding the prior
121adjustment by the board.
122     Section 3.  Section 193.018, Florida Statutes, is created
123to read:
124     193.018  Assessment of deed-restricted property.--
125     (1)  The owner of residential rental property, multiunit
126commercial rental property, property used as a marina,
127waterfront property used exclusively for commercial fishing
128purposes, or property rented for use by mobile homes may enter
129into a deed-restriction agreement with the county to maintain
130the property at its current use for a period of at least 5
131years.
132     (2)  The property appraiser shall consider the deed-
133restriction agreement in determining the just value of the
134property.
135     (3)  If, prior to the expiration of the deed-restriction
136agreement, the property is not used for the purposes set forth
137in the deed-restriction agreement, the deed-restriction
138agreement shall be terminated and the property owner shall pay
139to the county an amount equal to the additional taxes that would
140have been paid in prior years had the deed-restriction agreement
141not been in effect, plus 12 percent interest.
142     Section 4.  Subsection (4) of section 194.011, Florida
143Statutes, is amended to read:
144     194.011  Assessment notice; objections to assessments.--
145     (4)(a)  At least 15 days before the hearing, the petitioner
146shall provide to the property appraiser a list of evidence to be
147presented at the hearing, together with copies of all
148documentation to be considered by the value adjustment board and
149a summary of evidence to be presented by witnesses.
150     (b)  At least 15 No later than 7 days before the hearing,
151if the petitioner has provided the information required under
152paragraph (a), and if requested in writing by the petitioner,
153the property appraiser shall provide to the petitioner a list of
154evidence to be presented at the hearing, together with copies of
155all documentation to be considered by the value adjustment board
156and a summary of evidence to be presented by witnesses. The
157evidence list must contain the property record card if provided
158by the clerk. Failure of the property appraiser to timely comply
159with the requirements of this paragraph shall result in a
160rescheduling of the hearing.
161     Section 5.  Subsection (2) of section 194.013, Florida
162Statutes, is amended to read:
163     194.013  Filing fees for petitions; disposition; waiver.--
164     (2)  The value adjustment board shall waive the filing fee
165with respect to a petition filed by a taxpayer who is eligible
166to receive one or more of the exemptions under s. 6(c), (f), or
167(g), Art. VII of the State Constitution, regardless of whether
168the taxpayer's local government grants the additional local
169homestead exemptions. The filing fee also shall be waived for a
170taxpayer who demonstrates at the time of filing, by an
171appropriate certificate or other documentation issued by the
172Department of Children and Family Services and submitted with
173the petition, that the petitioner is then an eligible recipient
174of temporary assistance under chapter 414.
175     Section 6.  Section 194.015, Florida Statutes, is amended
176to read:
177     194.015  Value adjustment board.--
178     (1)  There is hereby created a value adjustment board for
179each county, which shall consist of five members.
180     (2)(a)1.  Three members shall be appointed by of the
181governing body of the county, as follows:
182     a.  One member must own a homestead property within the
183county.
184     b.  One member must own a business that occupies commercial
185space located within the county.
186     c.  An appointee may not be a member or an employee of any
187taxing authority.
188     2.  as elected from the membership of the board of said
189governing body, One of such appointees whom shall be elected
190chairperson.
191     (b)  , and Two members shall be appointed by of the school
192board, as follows:
193     1.  One member must own a business that occupies commercial
194space located within the school district.
195     2.  One member must be eligible to receive one or more of
196the exemptions under s. 6(c), (f), or (g), Art. VII of the State
197Constitution, regardless of whether the taxpayer's local
198government grants the additional local homestead exemptions.
199     3.  An appointee may not be a member or an employee of any
200taxing authority as elected from the membership of the school
201board. The members of the board may be temporarily replaced by
202other members of the respective boards on appointment by their
203respective chairpersons.
204     (3)  Any three members shall constitute a quorum of the
205board, except that each quorum must include at least one member
206of said governing board and at least one member of the school
207board, and no meeting of the board shall take place unless a
208quorum is present.
209     (4)  Members of the board may receive such per diem
210compensation as is allowed by law for state employees if both
211bodies elect to allow such compensation.
212     (5)  The clerk of the governing body of the county shall be
213the clerk of the value adjustment board.
214     (6)(a)  The office of the county attorney may be counsel to
215the board unless the county attorney represents the property
216appraiser, in which instance the board shall appoint private
217counsel who has practiced law for over 5 years and who shall
218receive such compensation as may be established by the board.
219     (b)  Meetings No meeting of the board may not shall take
220place unless counsel to the board is present. However, counsel
221for the property appraiser shall not be required when the county
222attorney represents only the board at the board hearings, even
223though the county attorney may represent the property appraiser
224in other matters or at a different time.
225     (7)  Two-fifths of the expenses of the board shall be borne
226by the district school board and three-fifths by the district
227county commission.
228     Section 7.  Subsection (2) of section 194.032, Florida
229Statutes, is amended to read:
230     194.032  Hearing purposes; timetable.--
231     (2)  The clerk of the governing body of the county shall
232prepare a schedule of appearances before the board based on
233petitions timely filed with him or her. The clerk shall notify
234each petitioner of the scheduled time of his or her appearance
235no less than 25 calendar days prior to the day of such scheduled
236appearance. Upon receipt of this notification, the petitioner
237shall have the right to reschedule the hearing for the failure
238of the property appraiser to comply with the requirements of s.
239194.011(4)(b). The hearing shall be rescheduled no sooner than
24015 days after the property appraiser complies with the
241requirements of s. 194.011(4)(b). The petitioner shall also have
242the right to reschedule the hearing a single time by submitting
243to the clerk of the governing body of the county a written
244request to reschedule, no less than 5 calendar days before the
245day of the originally scheduled hearing. Additional rescheduling
246of the hearing may be granted to the taxpayer upon receipt of an
247affidavit from a physician that states a medical reason as to
248why the petitioner needs to reschedule the hearing. A copy of
249the property record card containing relevant information used in
250computing the taxpayer's current assessment shall be included
251with such notice, if said card was requested by the taxpayer.
252Such request shall be made by checking an appropriate box on the
253petition form. No petitioner shall be required to wait for more
254than 2 4 hours from the scheduled time; and, if his or her
255petition is not heard in that time, the petitioner may, at his
256or her option, report to the chairperson of the meeting that he
257or she intends to leave; and, if he or she is not heard
258immediately, the petitioner's hearing shall be rescheduled for a
259time reserved exclusively for the petitioner administrative
260remedies will be deemed to be exhausted, and he or she may seek
261further relief as he or she deems appropriate. Failure on three
262occasions with respect to any single tax year to convene at the
263scheduled time of meetings of the board shall constitute grounds
264for removal from office by the Governor for neglect of duties.
265     Section 8.  Subsection (2) of section 194.034, Florida
266Statutes, is amended to read:
267     194.034  Hearing procedures; rules.--
268     (2)  In each case, except when a complaint is withdrawn by
269the petitioner or is acknowledged as correct by the property
270appraiser, the value adjustment board shall render a written
271decision. All such decisions shall be issued within 20 calendar
272days of the last day the board is in session under s. 194.032.
273The decision of the board shall contain findings of fact and
274conclusions of law and shall include reasons for upholding or
275overturning the determination of the property appraiser. If the
276determination of the property appraiser is overturned, the board
277shall order the refunding of the filing fee required by s.
278194.013. When a special magistrate has been appointed, the
279recommendations of the special magistrate shall be considered by
280the board. The clerk, upon issuance of the decisions, shall, on
281a form provided by the Department of Revenue, notify by first-
282class mail each taxpayer, the property appraiser, and the
283department of the decision of the board.
284     Section 9.  Subsection (3) is added to section 194.192,
285Florida Statutes, to read:
286     194.192  Costs; interest on unpaid taxes; penalty; attorney
287fees.--
288     (3)  If the court finds that the amount owed by the
289taxpayer is less than the amount of tax paid, the court shall
290enter judgment against the appraiser for the difference and for
291interest on the difference at the rate of 12 percent per year
292from the date of payment. If the final assessment established by
293the court is lower than the value assessed by the property
294appraiser by more than 10 percent, the court shall assess and
295award reasonable attorney fees to the taxpayer.
296     Section 10.  Section 194.301, Florida Statutes, is amended
297to read:
298     194.301  Presumption of correctness.--In any administrative
299or judicial action in which a taxpayer challenges an ad valorem
300tax assessment of value, the property appraiser shall have the
301burden of providing by clear and convincing evidence that the
302assessment is correct. In any judicial action, the burden of
303proof shall be upon the party initiating the action appraiser's
304assessment shall be presumed correct. This presumption of
305correctness is lost if the taxpayer shows by a preponderance of
306the evidence that either the property appraiser has failed to
307consider properly the criteria in s. 193.011 or if the property
308appraiser's assessment is arbitrarily based on appraisal
309practices which are different from the appraisal practices
310generally applied by the property appraiser to comparable
311property within the same class and within the same county. If
312the presumption of correctness is lost, the taxpayer shall have
313the burden of proving by a preponderance of the evidence that
314the appraiser's assessment is in excess of just value. If the
315presumption of correctness is retained, the taxpayer shall have
316the burden of proving by clear and convincing evidence that the
317appraiser's assessment is in excess of just value. In no case
318shall the taxpayer have the burden of proving that the property
319appraiser's assessment is not supported by any reasonable
320hypothesis of a legal assessment. If the property appraiser's
321assessment is determined to be erroneous, the Value Adjustment
322Board or the court can establish the assessment if there exists
323competent, substantial evidence in the record, which
324cumulatively meets the requirements of s. 193.011. If the record
325lacks competent, substantial evidence meeting the just value
326criteria of s. 193.011, the matter shall be remanded to the
327property appraiser with appropriate directions from the Value
328Adjustment Board or the court.
329     Section 11.  This act shall take effect upon becoming a
330law.


CODING: Words stricken are deletions; words underlined are additions.